Labor unions and businesses in the heavy equipment industry have asked the U.S. Congress to place a tax on imported equipment in order to make it more expensive. They hope that this will allow U.S. producers to be more competitive. The U.S. heavy equipment industry appears to be seeking a(n): O CAVAB revenue tariff. protective tariff. injunction. 7 import licensing. 1 nontariff barrier.
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- Only typed answer and please don't use chatgpt A firms labor demand and labor supply equations are shown below. Labor demand equation: Ld = 40- 2(w) Labor supply equation: Ls = 20 + 3(w), where w is the wage per hour worked. Instructions: Round your answers to the nearest whole number. a. The equilibrium wage is $______ and the equilibrium quantity of labor employed is______ people. b. The workers, thinking that their wages are too low, decide to strike. After tense negotiations, the firm decides to raise the wage by 50 percent. After the wage increase, ______ people are unemployed.use diagramsa. What is the effect on the equilibrium price and quantity traded in market of theintroduction of a new technology that reduces costs of production for all firms?b. What is the effect on the equilibrium price and quantity traded in a market of a changein tastes that reduces the demand for the product?c. What is the effect on the equilibrium price and quantity traded in a market of theimposition of a tax per unit sold on suppliers?d. What is the effect on the equilibrium price and quantity traded in a market of thepayment of a subsidy per unit sold paid to suppliers?a. Differentiate between the following as used in economics: i. Diminishing Marginal Utility and Diminishing marginal returns. ii. Specific tariff and Ad Valorem tariff. iii. Explicit and implicit costs. b. Assume you own and manage your manufacturing unit where you receive total revenue of$50 000. Other relevant financial information is given below: Inputs Cost($)Raw material 20 000Labour 8 000Rent 10 000Interest 5 000 i. Calculate Accounting profit. ii. If your other employment opportunity is to earn P10 000 per month working at a softwarecompany, what will be your economic profit? Would you be prefer to continue with theBusiness? Explain. c. Identify any three (3) features a monopoly market structure.
- UST 40,000 (Commerce 5,000; Medicine 15%; AB 20%; Law 5% and others)Average price per computer device Php25,000Average price per Apple device Php30,000In UST, students from Commerce, Law, and AB purchased at least one (1) computer device in December 2020.Given that students replace their computer devices once every 2 years on average, what is the projected market size (units/revenues) for computer devices for these colleges until the end of2025?What is the concentration of sales/revenue of computer devices among the colleges (CDI)?(a) Solve for the equilibrium wage and employment level.(b) Graph the demand and supply curves.(c) At this equilibrium, what is your welfare/gains from trade?(d) Now, assume a minimum wage has been implemented at $20. How will this impact yourdemand? Supply?(e) How many workers are displaced by this new policy? How much “extra” unemployment occurswith this new policy? Hint: Think about the reservation wage.(f) Graph the new labor demand and supply with this minimum wage.(g) At this equilibrium, what is your new welfare? Are you better off with this change? Explain.KINDLY ANSWER quetion "d" 5) (KEY QUESTION) Minimum Wages and Unionsa. Assume an industry without legal minimum wages and unions. Show in a diagram how the equilibriumwage W* is determined, and briefly explain all the concepts in the diagram.b. Now suppose a minimum wage, WMIN, is legislated at a level lower than W*, i.e. WMIN<W*. Show it in thediagram and explain whether the labour market outcomes in part a. change, and how.c. Now suppose a minimum wage is legislated at a level higher than W*, i.e. WMIN>W*. Show it in thediagram and explain what the labour market outcomes will be.d. Now suppose a workers’ union is created and successfully negotiates wage WUNION, which is above bothW* and WMIN, i.e. WUNION>WMIN>W*. Explain what the labour market outcomes will be compared to theprevious part
- Explain whether each of the following eventsincreases, decreases, or has no effect on long-runaggregate supply.a. The United States experiences a wave ofimmigration.b. Congress raises the minimum wage to$15 per hour.c. Intel invents a new and more powerfulcomputer chip.d. A severe hurricane damages factories along theEast Coast.Suppose the marginal revenue from search isMR = 50 - 1.5wwhere w is the wage offer at hand. The marginal cost of search isMC = 5 + wa. Why is the marginal revenue from search a negative function of the wage offer at hand?b. Can you give an economic interpretation of the intercept in the marginal cost equation; in other words, what does it mean to say that the intercept equals $5? Similarly, what does it mean to say that the slope in the marginal cost equation equals one dollar?c. What is the worker’s asking wage? Will a worker accept a job offer of $15?d. Suppose UI benefits are reduced, causing the marginal cost of search to increase to MC = 20 + w. What is the new asking wage? Will the worker accept a job offer of $15?PLEASE ANSWER AND EXPLAIN NUMBER 2 AND 3Suppose that the world demand and supply elasticities of crude oil are -0.906 and 0.515, respectively. The current equilibrium price is $30 per barrel and the equilibrium quantity is 16.88 billion barrels per year. Derive the linear demand and supply equations. Now suppose the world supply curve you derived above consists of competitive supply and OPEC supply. If the competitive supply equation is: SC = 7.78 + 0.29P, what must be OPEC's level of production in this equilibrium? Now suppose social and political unrest in some non-OPEC producing countries reduced the competitive supply by 30 percent, what happens to the world price of crude oil?
- E2 Problem 1: Labor Unions. The aggregate supply of cricket players is given byw = 75 + 2Land the aggregate demand for cricket players is given byw = 315 −4L 1. First assume that the players and the teams are all in perfect competition.a) Find the equilibrium number of players. Find the equilibrium wage.b) Find the league surplus and player surplus. 2. Next assume that the players form a union, but the teams are in perfect competition.a) Find the equilibrium number of players. Find the equilibrium wage.b) Find the league surplus and player surplus. 3. Now assume that the teams also form a league, creating a bilateral monopoly. Theplayers have a well-established union, and thus have slightly more power in negotiation.In particular, the union’s bargaining power is β = 3 5.a) Find the equilibrium number of players.b) What is the wage that gives players all the surplus?c) What is the wage that gives league all the surplus?d) Find the negotiated equilibrium wage.e) Find the league surplus…Please answer the c and d. Suppose that labour demand and labour supply are represented by the equations: Demand: LD = 10 - 0.5W Supply: LS = 0.5W a. Find the equilibrium wage and employment levels. b. Graph the curves and indicate the equilibrium on a graph. c. Suppose hiring is done through a labour union in this market which has limited hiring to 4 workers. What will be the wage in this market? d. Give one factor which causes labour demand to increase and one factor which causes labour supply to increase.Suppose the current exchange rate is 115 yen perdollar. We currently have a demand for 50 units of ourproduct when the unit price is 800 yen. The cost ofproducing and shipping the product to Japan is $6, and the current elasticity of demand is 22.5. Find the opti-mal price to charge for the product (in yen) for each of the following exchange rates: 60 yen/$, 80 yen/$, 100yen/$, 120 yen/$, 140 yen/$, and 160 yen/$. Assumethe demand function is linear.